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Tuesday, 6 December 2011

"Dream On"

Jersey States could sue UK government over VAT change

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LVCR allows Channel Island companies to sell some goods to the UK without VAT

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Jersey's government could mount a legal challenge against the British government over plans to end a so called VAT loophole.
Chancellor George Osborne unveiled plans to end the tax relief for Jersey firms selling goods to UK customers.
HM Revenue and Customs published proposals to end Low Value Consignment Relief (LVCR) from April 2012.
Jersey's Economic Development Minister Senator Alan Maclean said he would do all he could to protect local jobs.
Senator Maclean said: "I think we are unhappy by the fact it appears the UK are discriminating against the Channel Islands with the decision they have taken.
"It is very much up to the law officers and our legal advice to ascertain the exact basis for a case."
In his Autumn Statement, Mr Osborne said: "We're going to tackle the exploitation of LVCR.
"[It] has left our high street music stores fighting a losing battle with warehouses in the Channel Islands."
In the statement it was estimated the ending of the relief, due to take effect from April 2012, would make an additional £90m for the UK government in its first year.


  1. julie Daly-WallmanDecember 06, 2011 9:10 pm

    I hope Mr Alan Maclean reads this message. Dear Mr Alan Maclean, you are how long in your role as Jersey's Economic Development Minister? I know a long while, in that time what you should have been doing is developing local industries for import and export markets! you should have been the one in the front fighting for Jersey school milk for schools, why? it's simple! Jersey milk for example has 3 benefits and it's what you should be doing! 1) it gives our children a healthy drink, 2) it pays our local farmers 3) it keeps our Jersey cow in the Jersey fields. But instead Dear Alan Maclean is fighting for something he can't win, which is the VAT loophole! looks great across the seas! forget the finance industry for a minute we have our Economic Development Minister fighting for a VAT loophole that the Island has had for a long enough time and it's a disgrace and also makes Jersey look ridiculous! why oh why in all this man's time as yes, Economic Development Minister he actually has not done his job? There are plenty of other people who can! The choice is yours! if you are so interested in fighting a VAT loophole then quite frankly, you are in the wrong job! I feel for all the people who will be out of a job because of this, but if people like Mr Maclean had done the job they were supposed to do, this could have been avoided.

  2. You never sent your phone No Julie?

  3. If these clowns decide to challenge the UK Government over this issue, it will cost countless thousands, and they will have absolutely no chance of success.

  4. well this was gonna happen sooner or later,but i do feel sorry for the people that are going to loose there jobs because of this,and to fight the might that is the uk goverment and get some sort of pay out what planet is he living on it will never happen!oh and on the note maybe us islanders should have a petition against us haveing all our choices taken away from us by dropping the threshold on goods imported into the island from £450 to £240 that we now have to pay gst on.we dont like it either but now there moaning about the vat loophole being closed,hhhmmmmmmmmm pop corn in the kettle black there

  5. the low value consignment relief(lvcr)was introduced to help agricultural industries such as flower growers in jersey and guernsey by ensuring that there products weren't damaged by the delay caused by processing vat.however companys in jersey and guernsey have just exploited this loophole to the maximum,so thats now why the loophole has now been closed.

  6. jersey's fat greedy pigs should have learnt a valuable lesson here,as there explotation of this loophole has now backfired on them now big time,but i can see whats gonna happen now there gonna have to find extra money now for all the unemployed so don't be suprised if its us lot that will have to pay in one form another,but my guess is they will add knock the gst up to 7 or 8% to cover this sometime in the very near future.